When it comes to choosing between renting and buying a house, there is no definite answer to selecting the right choice. However, this post weighs the pros and cons of buying and renting a house, especially in Nigeria.
1. Financial Consideration
Buying a home requires significant spending. Nonetheless, this counts for equity accumulation and long-term appreciation which can yield interest over time.
Rent payments provide no opportunity for equity or investment over time, which also fluctuates as time progresses. Unlike buying, renting does not require any extreme spending.
2. Maintenance and Responsibility
Homebuyers are responsible for any ongoing maintenance and repairs, which can be costly. It however gives room for customization of home according to owner’s preference.
On the other hand, renting a house means one is not entirely responsible for any major maintenance or repairs as it is significantly the responsibility landlord. Renting a house aid in cost-cutting and expense reduction.
3. Investment Potential
Real estate tends to appreciate over time, and it is a sound investment for buying a house or property. Buying is also an opportunity for wealth building and long-term financial stability.
Renting does not offer the same investment potential as homeownership. It only allows to get one moneys’ worth over a particular duration of time.
After considering the option of buying and renting a home, which do you think works best?